Independent Schools of Tasmania

Funding

IST Grants and Funding

Loan Interest Subsidy

This scheme is administered by Independent Schools Tasmania on behalf of the Department of Education.

Eligibility for Loan Interest Subsidy

A loan interest subsidy is awarded in accordance with Part 5 of the Education Act 1994 to offset interest paid on a loan taken out for the purpose of eligible capital expenditure. This is expenditure incurred for the educational or residential purposes of the school's students and can relate to:

(a) the acquisition of land;

b) the erection, alteration and extension of buildings; and

(c) the installation of essential services.

Schools negotiating non-conventional loans, such as ‘lines of credit’ may be eligible if the borrowings are for approved purposes.

A loan interest subsidy is only available for that part of a loan which is used for eligible capital expenditure. Accordingly, it is possible to register the eligible portion of a loan for an interest subsidy payment.

Loans must be scheduled to be repaid within a period of no more than 20 years, this being the maximum period for allocating an interest subsidy for any loan.

Interest only loans are not eligible for a subsidy.

Only loans provided on a commercial, arms-length basis are eligible for a subsidy.

Independent Schools Block Grant Authority Tasmania (ISBGAT)

Australian Government Capital Grants Program

The Independent Schools Block Grant Authority of Tasmania (ISBGAT) is the authority in the State administering the Capital Grants Program (CGP).

In previous years, grants were awarded in the Investing in Our Schools Program 2005-2008 (completed in 2009), Building the Education Revolution (BER), the National Secondary Schools Computer Fund Rounds 1 and 2, the Digital Education Revolution (DER) and funding under the Trade Training Centres Program (TTC) in the independent school sector on behalf of the Australian Government.

Each year, under the Capital Grants Program, ISBGAT invites applications from member schools for grants towards projects. Successful applicants receive grants normally spread over the three years following the year of application.

ISBGAT is a private company in which IST owns all the three shares. Whilst ISBGAT operates under the authority of and within the terms of reference provided by the IST Board, it is a separately incorporated body and operates independently of the normal responsibility and functioning of IST. The ISBGAT Committee is composed of appropriately qualified representatives from the community and from member schools.